CA’s New Retirement Savings Program: CalSavers Registration Begins July 1

DATE: June 19th, 2019

CalSavers Retirement Savings Program is a simple way to help your employees save for the future. And you can get started today! CalSavers Registration launches July 1.


As a business owner, you know that designing impactful and compliant benefits packages is complicated.  You want to offer all the best options, but you (and all other owners and executives) are limited by your company’s circumstantial realities.  The State of California recognized that far too many employers are unable to offer retirement programs for their employees because of the administrative complexities, fees, and fiduciary liabilities associated with yesterday’s options.  But today, a new solution is being launched: CalSavers Retirement Savings Program.

What is CalSavers?

CalSavers Registration for Small Businesses

CalSavers is a state-run retirement savings program that’s designed to bridge the gap between private-sector employers who can’t offer retirement programs and employees who need help planning for the future.  It empowers employers to better support their employees without adding to the burdens of running a small or medium-sized business.

Starting inJuly 2019, California begins offering an estimated 7 million workers in California the opportunity to contribute to an IndividualRetirement Account (IRA) and get on track for the future. 

(CalSavers Website)

The concept for the program began in 2016, when the California Legislature passed SB-1234.  After finalizing the plan in 2018, a pilot program launched to gather important data about employees’ and employers’ needs and to optimize the user experience.  As of July 1, 2019, CalSavers Registration is open to businesses across the state.

What Employers Need to Know

The CalSaversRetirement Savings Program offers an easy way for employers “to help their employees save for retirement, with no fees, no fiduciary responsibility, and minimal ongoing responsibilities.” 

By design, the program requires little effort from employers.  Here’s what you need to do to get started:

  1. Register your business (CalSavers Registration opens on July 1, 2019) at www.calsavers.com.
  2. Set up your account (within 30 days of registering) – naming a program administrator and payroll representatives, creating a payroll list, and providing information about each employee.
  3. Ensure each employee receives a packet of information.

Once your account is set up and your employees are enrolled, these are your ongoing responsibilities:

  • Each pay period, deduct and submit each employees’ contributions.
  • Add/remove employees as they’re hired or leave the company.

It’s that simple.  There are no fees.  Employees are responsible for their investment choices.  And, as an employer, you don’t make contributions.

What Are the CalSavers Registration Deadlines?

Over the course of the next few years, California state law will require employers with five or more employees to offer either an employer-sponsored retirement plan or to facilitate the CalSavers Retirement Savings Program. 

CalSavers registration begins July 1, 2019, but there’s a three-year phased rollout with staggered deadlines based on the number of employees.

  • Over 100 employees – June 30, 2020
  • Over 50 employees – June 30, 2021
  • 5+ employees – June 30, 2022

To help your employees understand how CalSavers works for them, encourage them to visit the “For Savers” section of the CalSavers website.

Let’s Discuss How the CalSavers Requirement Will Affect Your Business

Trusted in the community since 2007, California Labor Solutions LLC (CLS) is a specialized HR consulting firm – based out of Orange County, California – that offers comprehensive, personalized, and scalable outsourcing services designed to grow with your evolving needs. 

As Founder and CEO of CLS, Shawn Larry takes a solutions-driven approach to human resources – working to inspire confidence in the CEOs and managers who depend on his leadership.  In addition to 20+years of experience in the field, Shawn has achieved many credentials and recognitions, including a J.D. from UOP-McGeorge Law School; California Private Investigator License; Certified Mediator; Senior Professional in Human Resources Certification (by HR Certification Institute); and Senior Certified HR Professional (by International Public Management Association).

CLS services include: HR Consulting & Regulatory Compliance, Training & Professional Development, Workplace Investigations, and Quality Management Programs.